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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Franklin who wrote (6703)	10/26/1997 7:48:00 PM
From: TideGlider	Read Replies (1) \| Respond to of 25960

Paul: When did you get out? You went long in CYMI on 9/12....did ya get clipped or profit? Bruce

To: Paul Franklin who wrote (6703)	10/26/1997 10:15:00 PM
From: sepku	Respond to of 25960

>>> I take it that the decline in margins this quarter were due to plant expansion, etc.<<< That and increases in R&D and training, according to the CC. >>>In figuring EPS for 98 and beyond, does everyone think Cymer will be able to prevent pricing pressures on their lasers and maintain high margins considering possible increases in competition?<<< It is estimated that approx. 700 lasers will be needed worldwide in 1998. In previous posts, most of us estimated 600 of them would be Cymer's, which is reasonable since that accounts for 85% market share when Cymer presently holds 90%, allowing for a decline of 5% if the competition makes a little progress. It was stated in the CC that Cymer has always had the most expensive product, yet still manages to hold most of the market. So there are apparently more issues at hand besides price that influences a customer's choice in its laser supplier (quality, reliability, support, durability, performance, etc). Komatsu is estimated to be able to offer at most, 25 lasers next year. Subtract that from the 700 and you have 675. Lambda would have to pick up the last 75 in order to leave the final 600 to Cymer. Otherwise, it looks like Cymer will be selling upwards of 600 lasers in 1998. I think Cymer's margins will be alright. Style Pts.